good article on mbl.

http://www.smh.com.au/news/business/macquarie-to-extend-bid-to-buy-london-se/2006/02/13/1139679535004.html

Macquarie to extend bid to buy London SE

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By Lisa Murray
February 14, 2006
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MACQUARIE Bank is today expected to extend for a second time its takeover offer for the London Stock Exchange.

But there is debate about whether it will stick to its original price of 580p a share, which values the LSE at $3.5 billion, or raise the stakes.

Some reports in the UK suggest Macquarie could lift its offer by 20 per cent to 700p.

But others expect the bank to stick to its original plan of flushing out any other suitors for the LSE before revising its offer.

Macquarie's main competition is now expected to come from the US. The New York Stock Exchange and the Nasdaq have been touted as potential bidders.

While NYSE boss John Thain has indicated he wants to play a big role in industry consolidation around the globe, the US exchange is still completing its merger with the Archipelago trading network. Until it does that, it has no share price and thus no acquisition currency.

Last week, the Paris-based stock exchange Euronext said talks about a merger between it and Deutsche Boerse had fallen apart because of differences over legal structure, domicile and the ownership and management of technology.

That could leave either of them free to bid for the LSE. But Deutsche Boerse has already tried.

It made an offer early last year, only to be forced to withdraw it after three months following a shareholder revolt.

Some of the same shareholders who opposed the Deutsche Boerse bid also sit on Euronext's share register.

A spokesman for Macquarie declined to comment on speculation the bank would lift its offer for the LSE. Shares in the bank fell 64c to $63.85.

One analyst who preferred not to be named said that even if Macquarie did not end up buying the LSE, its takeover bid had lifted the bank's profile with offshore investors.

"From a marketing point of view, this has been an exceptional exercise," the analyst said.

Wilson HTM analyst Brett Le Mesurier said the acquisition would allow Macquarie to diversify its asset base.

"It's just another brick in the wall for them," he said.

Mr Le Mesurier dismissed concerns that the acquisition was risky because the exchange was a more complex business than a toll road or an airport. "They know about stock exchanges. It's their business," he said.